Posts tagged assessment

Incorporating Recurring Measures in Your Assessments

Strategic Planning Think Big March 22, 2014

Strategic planning, as a structured and systematic process, is successful when it is leader-led and overcomes the five reasons 70% of all strategies fail. Learn how to see your plan through to success. The strategic planning process is where leaders of an organization establish the vision of the organization’s future and then develop and implement the actions necessary to achieve that future. This article expands on the strategic planning concepts addressed in Think Big, Take Small Steps and is designed to help you achieve success in your strategic planning process.

What Gets Measured, Gets Done — Over and Over Again.

Several weeks ago, I shared with you a tool that I use for organizational assessments in my Assessing Your Organization Using the Military’s DOTMLPF – FREE Assessment blog. In that blog, I told you that I ask, through interviews, for interviewees to rate particular items from 1 to 5.

The reason I structure and write out these interview templates is so that, in a year, myself, or the company, can go back and ask the same questions, or at least a subset of those questions, the same way year-after-year. Specifically, I want them to ask these 1 to 5 questions again if nothing else. This is a way to compare the organization’s strategic progress over the years. This utilizes your DOTMLPF-FREE Assessment as your guiding light over the strategic journey of the organization.

Additionally, when developing the organizational assessment, look for key things that the company measures today and bring that into the assessment. Do they have a balanced scorecard that they use? What type of human resource measures do they have, like employee engagement (I recommend Gallup), retirement eligibility and employee tenure, and attrition rates? Operational volume of services and sales and overall expense, when combined, provide a simple view of average cost per piece for an organization. Look for the big things you can measure every year or that they already measure.

Tying a company’s strategy to what they measure, or things they should be measuring, helps ensure the success for the strategic plan in the future. All too often, strategies are created by a single executive or small group of executives who come up with a mission, vision, and goals, in a conference room. The reality of these are as good as the wordsmithing that occurs to create them. The purpose of Think Big, Take Small Steps and specifically this whole section on How to Conduct an Organizational Assessment, is to provide the Executable Focus that helps strategies succeed.

Incorporating recurring measures in the organizational assessment at the start provides the organization with a repetitive tool for addressing and measuring strategic progress. The tendency will be to measure everything and that simply isn’t required. The company will have lots of measurements that could absorb your time and attention. Focus only on the few that are important.

For instance, I worked with the Air Force Sergeants Association over the years as a consultant and volunteer. As a membership organization, their primary focus is providing an Air Force Enlisted Voice on Capitol Hill. Their mission is only effective if they have a strong membership base. As a general rule, lobbying associations with less than 100K members tend to be discounted. Thus, Membership Strength was the most important strategic metric for the association, especially when they hover around 120K. However, for a long time, they only focused on Membership Recruiting and didn’t really look at the bottom line. They would be recruiting people by the droves, but on the back end they were pouring out the door faster as their membership expired. Taking account of Membership Strength, along with Membership Recruiting, Membership Retention, and Membership Loss provides the full strategic picture on the most important factor that the association cares about–Legislative Strength. Now you they strategically examine what drives recruiting and retention and causes loss for the organization and focus on these activities. A DOTMLPF-FREE assessment further highlights gaps that might be affecting or preventing the association from being successful.

Part of assessing an organization is to develop recurring measures that give the organization a repetitive tool for addressing and measuring strategic progress. If you follow my suggested approach with DOTMLPF-FREE, you will automatically create a starting strategic performance measure. Then focusing on those important few metrics that tell you everything about the organization and are fairly easy to obtain round out the assessment. Remember, this is strategic…not operational or tactical planning…and you want to focus on strategic measures that lead you to operational and tactical actions. This provides an executable focus to your plan.

So, 70% of all plans fail to some level; however, by following these guidelines you can help ensure your strategic plan will be one of the 30% successes that everyone reads about.

Related Links:

Air Force Sergeants Association: http://afsahq.org/
http://balancedscorecard.org/
http://www.dummies.com/how-to/content/how-to-measure-your-strategic-plans-success.html
http://www.gallup.com/

Are You Ready for Change?

Change Management Strategic Planning Think Big February 22, 2014 19 Comments

Understanding Your Company’s Readiness for Change Prepares for Strategic Planning Success.

It always amazes me that people don’t inherently understand that strategic planning equals strategic change.

If you have a “vision” then that means you are looking to go somewhere in the future that you aren’t at today. If you live in Kansas and have a vision of moving to California, do you think anything is going to change as a result of that move? Unfortunately, many executives fail to understand the magnitude of change that they are embarking on when getting into serious strategic planning–I say serious because many are not and this is the primary reason plans fail as I pointed out in The Importance of Strategic Planning.

Like many companies, we foray into changes without even considering the readiness of our organization for that change. Some of these changes are small, like moving a few executives around, creating a new product, or improving a process. Some are rather large, like mergers, organizational changes, and layoffs. However, nothing is quite like strategic change. A strategic plan is a long-term project–what I like to think of as the “forever project.” Your organization, when embarking on a serious strategic planning effort, needs to be ready for constant change forever.

Managing the change after you’ve started implementing a strategy will probably fail. At the onset of your assessment you need to assess the readiness of the organization to make the changes that will ultimately be required.

There are many Change Readiness Assessments available for free on the internet. I encourage you to look for one and apply what you think is best, but I’m going to share with you some basic questions that might help you assess without using someone’s tool (free or not).

First, do the senior executives in the organization understand and agree on the need for change? Are they happy with the status quo or do they feel that something big needs to change? Are they engaged in the direction (vision) that the organization needs to go and do they agree with it? If the leadership don’t feel that there is a need for huge change in the organization, they won’t support it. The shadow they will cast on their people will ensure heels dig in and strategic change, if possible, will take much longer than necessary. More than likely, the strategy will be abandoned the first year because you can’t get leadership traction.

Once you’ve defined the direction the organization needs to go and the executive leadership is behind it, how well do the employees understand and agree with the direction and need for change. Is it a predominate opinion across the staff that everything is fine and they are doing well? A good factor to analyze is the longevity of the employees. Long-term employees are much more resistant to change because they have a lot more invested in the organization. Strategic change usually means that people will move, organizations will change, lots of new skills will be introduced, etc. You’re not thinking about moving someone’s cheese here–you’re looking at throwing away the old moldy cheese and making new cheese–a much stronger version no less. You can always expect some resistance to change, especially in the employees, but massive resistance will cripple your effort. Understand it up front.

Before you really sit down and consider the strategy going forward, think about how things on a high-level need to change. Your organizational assessment should show you this, even though you haven’t formalized anything. Consider what potential knowledge, skills, and abilities will be required of your leaders and employees. Then assess if your leaders and employees have these things. For instance, let’s say that the consensus is, based on what you’re seeing in the organizational assessment, that your company needs to consider outsourcing several non-core functions to focus on core activities and the core activities need to be more process-focused activities. The overall plan would be to redirect non-core employees to the core activities as you outsource so employee strength remains the same, but capacity increases and you envision obtaining industry expertise at a reduced cost through a managed services model. Do the employees left behind to oversee the managed service have the current capabilities to perform this partnership management role? Do the non-core employees need to learn new core capability skills to be able to operate? If everyone is going to be process-focused, do you have a small team of expert practitioners and is there appropriate process-related knowledge, skills, and abilities at all levels of the organization?

The last major point of this type of assessment is if the organization has any current way to effectively recognize and reinforce successful change? It is important to leverage these opportunities throughout a change effort and if they don’t exist, then they need to be created. Positive reinforcement of successes and dealing effectively with resistance (negative reinforcement) are key to the long term success of strategic change.

Having a plan isn’t enough–being able to implement that plan is where the strategy emerges. However, strategy means change–change like you’ve never felt before. If your organization isn’t ready for that amount and type of change, your first strategic activity might be to build the organization’s readiness for strategic change. If you ignore the organization’s current readiness, then more than likely your strategy will fail.

So, 70% of all plans fail to some level; however, by following these guidelines you can help ensure your strategic plan will be one of the 30% successes that everyone reads about.

2. http://www.lencd.org/learning/howto-readiness

3. http://www.ascd.org/publications/books/109019/chapters/The-Organizational-Change-Readiness-Assessment.aspx

The Importance of a Stakeholder Assessment

Change Management Strategic Planning Think Big February 15, 2014 2 Comments

Conducting a Stakeholder Assessment When Developing a Strategic Plan is Crucial

I see a “strategy” being made up of three things: A mission, a vision, and goals on how to get from where you are now to where you are going. Those goals represent CHANGE in an organization–strategic change.

Anytime there is a change, there will be people who are for it and against it. The rest are the movable middle. Anytime you are planning a change, you need to analyze the audience that will be impacted by that change and continually manage that audience through the change.

Case in point: One of my clients had the words, “Meet customer’s expectations through product delivery,” in one of their goal statements. The strategy had been in place for several months, and the head of their operations was not supportive of the strategy–he wanted to create it himself versus as a leadership team. He also liked living in the realm of strategy because then he really wasn’t accountable for doing anything. Note that ‘accountable’ is a key word here. I was in a meeting with the head of the strategic planning department and the operations director and he said, quote, “I will not hold my people accountable for meeting customer expectations.”

Who, in the right mind as a leader, can say something as ludicrous as that? By this time, the strategy was really rolling out–plans were in place and changes were occurring. All this went on regardless of how much he tried to stop it. This was the cry of a desperate man. As a result of the shadow he cast, one of his directs was responsible for deploying part of the plan–specifically under this goal. We were attempting to establish actions and dates, when he broke down in a whiney voice almost on the edge of tears, and cried, “But, I don’t want to be held accountable to this.”

These situations are real. Strategy–good strategy–means change. If you are not prepared for this type of behavior from people that have influence and you require to make the strategy reality, then you will get stopped by this type of behavior.

I know in Good to Great, you are supposed to get people on the bus and off the bus to make things work, but in the real world, some organizations don’t have that luxury. Then you have to determine how to deal with them.

In a strategic change, there are four potential groups that you have to consider. Obviously, first are the stakeholders–those who have a vested interest in the change and impact of the change. Second are the customers–those who direct your organization to deliver goods and/or services. All customers are stakeholders, but not all stakeholders are customers. Two other potential groups are Partners and Suppliers. Partners and Suppliers are those you work with to deliver your goods and services to the Customer. Sometimes they can be everything, or sometimes, not. Understanding who they are and who of them are key–make a difference and can impact the change–is important. Note this Venn diagram and how these audiences interact.

Once you know who they are, list them out and try to determine what you know about then and what you don’t know about them. List out what stake they have in the change–what will be impacted and how they feel. On a scale of 1-5, rate their level of support of the change and on the same scale rate the level of influence that can have to impact it–1 being lowest. This tells you where you potentially could have your most difficult problems. As you can imagine, the Operations Director in my above example was low in support and high in influence–not a good combination. Those that are high in both can also become your greatest champions. Those who are low in both probably can be ignored–best to spend precious resources on the most important stuff.

With those that are important to this effort, plot them each on this continuum:

If they are low, or not even on the continuum, then, strategic activities designed to raise them on the continuum might help their acceptance and assistance. Sometimes they fully understand what is going on, but, getting them higher is impossible. In the case of the Operations Director, we basically forced him to retire and the next director that was hired supported the strategy. The bus activity; however, this took time. Obviously, if someone is simply aware of the strategy and doesn’t understand why it’s being done and what its impact is, then desiring advocacy and ownership is impossible. So, if you have someone at awareness, but you need them as an advocate, then you need to first get them to understanding, and then next to acceptance. Makes sense, right?

This is also helpful to determine if you already have someone at advocacy and that’s where you want them, then you don’t need to do anything. If someone has little influence on the strategy and change, then maybe awareness or understanding is fine. These decisions again allow you to focus your efforts in strategic areas.

Another way to map your audience is through this tool:

It’s a bit simpler in its approach, but can be effective. For a strategic plan, which takes years to implement, I like a much more detailed assessment and action plan than this, but you can choose. I also am Prosci certified in ADKAR, so I like to use that approach, but I am not free to share their proprietary process on this blog. You can read about it in books from Amazon and their certification is very effective. The approaches I’ve shared here are based on my Master’s-level Change Management certification from Georgetown University and are not proprietary.

So, you can see how important a Stakeholder Assessment is to develop during the Organizational Assessment. This, like any change effort, when done early, helps to prep the space and get people on board quickly or identify those you need to work around. This tool, is a lasting assessment that you may revisit regularly to see how things are progressing.

So, 70% of all plans fail to some level; however, by following these guidelines you can help ensure your strategic plan will be one of the 30% successes that everyone reads about.

2. http://www.amazon.com/Change-Management-The-People-Side/dp/193088561X/ref=tmm_pap_title_0?ie=UTF8&qid=1392477543&sr=8-2

3. http://en.wikipedia.org/wiki/Stakeholder_analysis

Understanding the Different Assessment Tools

Strategic Planning Think Big February 1, 2014 6 Comments

Strategic planning, as a structured and systematic process, is successful when it is leader-led and overcomes the five reasons 70% of all strategies fail. Learn how to see your plan through to success. The strategic planning process is where leaders of an organization establish the vision of the organization’s future and then develop and implement the actions necessary to achieve that future. This article expands on the strategic planning concepts addressed in Think Big, Take Small Steps and is designed to help you achieve success in your strategic planning process.

Knowing What Assessment Tools Exist is Half the Battle.

Last week, I highlighted several organizational assessment tools in my blog How to Conduct an Organizational Assessment. This will be a relatively short blog, compared to my others, because I just want to highlight some tools and in future articles, I will describe them in more detail. Please Follow My Blog to keep up with this running story. If you want to start at the beginning, check out the linked article in the first paragraph.

The most important thing to do, when conducting an assessment, is to structure your approach. I use an approach that I term DOTMLPF – FREE. This covered the areas of Doctrine, Organization, Training, Material, Leadership, Personnel, Facilities, Finances, Relationships, Efficiency, and Effectiveness. This is a fully rounded approach that allows you to score, evaluate, analyze, and report out an organizational assessment. I will fully cover this tool next in Assessing Your Organization Using the Military’s DOTMLPF – FREE Assessment.

When I conduct an organizational assessment, I always use three specific tools: a Stakeholder Assessment, a Change Readiness Assessment, the SWOT Assessment.

The Stakeholder Assessment is great for any change-related activity to determine who will be supportive and who will not of the change. It helps to outline what actions you need to take to gain their involve or mitigate their negative influence. Being a certified Prosci practicitioner, I use the ADKAR model for my assessment. All strategic plans, if implemented, result in change, so this is a very helpful tool to prepare for the development and eventual implementation.
Additionally, I like to use a Change Readiness Assessment to determine how ready the actual organization is for the upcoming strategic change. This is different than the Stakeholder Assessment, because it looks at change readiness from the organizational point of view. It is very helpful and a relatively short assessment that is easy to perform with a small team.
The SWOT assessment, if generally how I report out everything I find from my interviews following the DOTMLPF-FREE format. If you didn’t know, SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. As a general rule, I change the word Weaknesses to Challenges–it just goes over better. Most leaders have heard of the term SWOT Analysis from some business class or in the course of their work–seldom do you find anyone who can conduct one. The trick is, that I don’t “conduct” a SWOT Assessment–I assess what I learn about the organization using a SWOT grid and present the results in that manner.

SWOT, in my mind, is a high-level assessment and report. I also assess what I’ve learned from the DOTMLPF-FREE approach through a TIPS Assessment–Trends, Issues, and Problem Statements. What I do, is, using Affinity Diagramming, I build the major TIPS that the organization is faced with. These are also called “Emerging Insights,” which I’ve used in Army Campaign Planning. Under each major issue (defined through the Affinity Diagramming), I provide this general view:

Emerging Insight, Focus Area, or TIP Title
Assessment Observations: Things learned from the research and interviews aligned to this specific area.
Initial Recommendations: Specific recommendations I have, based on the observations, that they need to do to overcome this issue.

When I collect information from my research and interviews, I normally start organizing it in Microsoft Excel under buckets. The beauty of this type of analysis is that it provides the leadership with key areas that they need to work on to make their strategy successful. In many ways, these formulate at least some of the objectives during the facilitated session. Everything else builds to these key items.

You may find use for several other types of assessment and I would love to hear about ones you’ve used, especially if you can share links in the comments below. I love using maturity models for assessing organizations. I’ve even created a specific maturity model when none existed. These models provide a very organized view of the organization’s or domain’s maturity, benchmarks them against industry, and provides a roadmap for them to follow to get better.

Additionally, there are a number of industry specific assessment tools–like a specific assessment to look at non-profits, or assessments to look at finance, information technology, innovation, etc. When you discover a specific (major) challenge with a company, I suggest you research possible assessment tools, or don’t be afraid to create your own. A key point is, normally an assessment tool is nothing more than a structured survey method. All of these assessment tools ask specific questions and the results (answers) formulate the assessment of the organization.

A good example of a powerful assessment tool would be Gallup’s Employee Engagement Survey. This is a widely-use industry standard assessment tool to determine how engaged (or committed) an organization’s employees are. This can be a very helpful assessment and I’ve worked with the results for a couple years now.

Another example, would be ISO 14001–Environmental Management System. For several years, I worked for several EPA and DoD clients in the world of Environmental Management. I used this ISO standard as a key assessment tool for these engagements. This brought a level of professionalism and validity to my work with them, but also gave them something to use year-after-year, much like the Gallup Survey.

The summary of this article, which I expected to be shorter, is that you need to develop a stable of key assessment approaches and tools to analyze and present your analysis in the next phase of the strategic planning effort. You also should be aware of other possible tools for the industry you’re dealing with or tools that can help the organization focus on a specific area. A key factor is that you can overanalyze a situation by bringing in too many tools. Make sure the ones you use are effective and you keep overlap to a minimum. For an example, I use a Stakeholder Assessment and Change Readiness Assessment with every organizational assessment. They both deal with change capability, but they are focused differently and together complement each other.

Stay tuned to future weeks where I will explain some of these specific assessment tools and demonstrate more about how I use them for analysis and for reporting. I will also try to provide at least one example of the tool for your use.

So, 70% of all plans fail to some level; however, by following these guidelines you can help ensure your strategic plan will be one of the 30% successes that everyone reads about.

Related Links (find three links related to the topic of the article):

1. http://en.wikipedia.org/wiki/SWOT_analysis
2. http://en.wikipedia.org/wiki/DOTMLPF
3. http://www.gallup.com/